India: BigMint's ferrous scrap index remains stable on 7 June'24

• Semis', scrap prices remain range-bound
  
  
• Mumbai steel market sees need-based buying
  
  

BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market remained stable at INR 41,300/tonne (t) DAP on 7 June, 2024. Moderate trade activity characterized the market, with mills persisting in their routine scrap purchases. Moreover, ongoing scrap shortages and liquidity concerns kept the market range-bound.

Raw material prices

Today, sponge iron (CDRI) prices in Mandi experienced a decrease of INR 100/t to INR 34,700/t, whereas steel-grade pig iron prices in Ludhiana saw a drop of INR 42,600/t DAP.

Steel market

In Mandi, steel ingot prices remained constant d-o-d at INR 47,000/t during reporting and price normalisation. Similarly, prices in various significant markets also witnessed a drop, ranging from INR 100/t to INR 200/t today. In the near term, steel mills are anticipating a potential uptick in prices as a result of shortages in raw materials and production cuts.

Prices of rebar (Fe500) decreased by INR 200/t to INR 51,800/t exw.

Overview of other markets

Mumbai's IF-route rebar (Fe 500) prices decreased by INR 200/t to INR 51,700/t exw today. The market witnessed only need-based buying activities in finished steel as buyers are not opting for any bulk booking at current levels due to unclear market trends from the raw material side. However, scrap (HMS 80:20) prices stand at INR 36,000/t DAP. The conversion spread from scrap to billet hovered at INR 10,100/t.

Price highlights

End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,600-5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $395-$400/t, which equates to approximately INR 35,587/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai fell by INR 300/t to INR 36,000/t d-o-d. In India, indicative prices of shredded scrap from Europe stood at $415-$420/t CFR Nhava Sheva.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 16,600/t.

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